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Breaking News: Record Highs, EU Bonds Strengthening

Good morning, traders wherever you are! Today kicks off with big news for you. The Guardian reports about:

FTSE 100 spectacular rise

FTSE 100 has seen an absolutely booming rise this morning, reaching a new record high at the very start of trading.

Brexit or Nexit, the blue-chip index of leading shares went up by 40 points to hit 7411 for the first time, over 0.5% up. This is how it looks on the chart:

FTSE 100 since its beginnings in 1984. Image credit : Thomson Reuters

Other European stock markets are also facing an unprecedented jump, as a breath of fresh air with the Dutch elections sweeping trading floors in Paris, Frankfurt, Milan and Madrid.

The Amsterdam stock market has seen a 0.8% gain, reaching its highest level since December 2007.

RBC Capital Markets analysts say that the results of the Dutch elections strengthen hope that France’s presidential chair will eventually be occupied by a mainstream candidate.

France is now under the spotlight. The first round of voting is scheduled to take place on Sunday 23rd April, with Marine Le Pen holding the first page on every newspaper in the country. Markets were not late to respond to these developments on the political scene. Last night’s Dutch election result seems to tip the scales against anti-EU populist parties.

Konstantinos Anthis from ADS Securities noticed that some sort of relief seems to be the prevailing sentiment among investors who are now buying shares more than ever, considering the US Fed cautious position regarding the interest rate policy last night.

Investors were expecting the Yellen to go up around 4 rate hikes overall this year or see a price jump sooner than expected, potentially in June to feed the Dollar recovery. Quite to the contrary, the Fed Chief did not mention any of these possibilities and instead told The Guardian that the central bank didn’t go into detail about “potential policy changes”.

The Euro hit a five-week high, rising up to $1.0746 against the American currency.

The dollar’s weakness given the Fed’s tip-toeing about future interest rate hikes has a lot to do with the Euro strengthening, but also the Dutch election is an important factor.

Think Markets’ expert Naeem Aslam said that ” It is all over and public has put an end to the nonsense populist concept which started with Brexit. Dutch prime minister Mark Rutte has comfortably beaten the anti-Islam Freedom party.

We have a moment of calm and this has helped the euro to rally as everyone breathes a sigh of relief. Mr Wilders’ victory could have provided a tailwind for Marine Le Pen’s presidential campaign in France, which could have put the future of the euro in jeopardy”.

European government bonds are strengthening this morning, following Geert Wilder’s failure to claim first place in the Dutch election.

It is all over and public has put an end to the nonsense populist concept which started with Brexit. Dutch prime minister Mark Rutte has comfortably beaten the anti-Islam Freedom party.

We have a moment of calm and this has helped the euro to rally as everyone breathes a sigh of relief. Mr Wilders’ victory could have provided a tailwind for Marine Le Pen’s presidential campaign in France, which could have put the future of the euro in jeopardy.”

EU government bonds strengthen, as a chain reaction to Geert Wilder’s failure to claim top place in the Dutch election, The Guardian notes.

Assuming that Marine Le Pen’s rally for the presidency of France might be hindered, investors take the soaring French debt as a sign.

Reuters has the final say: “France’s government bond yields hit a one-week low in early trade on Thursday after results of Wednesday’s Dutch parliamentary elections suggested that populist party PVV would come a distant second to the current ruling party.

French government bonds were seen as vulnerable to a potential victory for PVV, as France faces its own presidential elections in April and May, with far-right leader Marine Le Pen in with a chance to win the keys to Elysee Palace.France’s 10-year government bond yield fell 5 basis points to one-week low of 0.99%. Most other euro zone bond yields were also lower on the day.”

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